Name: Bachelor Lake mine.

Location: The Bachelor Lake mine is located 225 km north-east of Val-d'Or in Quebec, Canada.

Controlling Company: Metanor Resources (100%).

Brief History: In November 2004 Metanor Resources (Metanor) acquired the rights to Bachelor Lake from Campbell Resources for $2.3-million. Since the acquisition of the old Bachelor mine by Metanor, the surface infrastructure has been restored to good working order. The 1 200 t/d ore mill was completely renovated and Metanor completed the installation of a carbon-in-pulp activated treatment system. The shaft sinking, which began during the course of 2010, was completed at the end of July 2011. A total 163 m were excavated and the Bachelor mine shaft has now reached a depth of 727 m. This work has allowed access to three additional levels 13, 14 and 15, which are 61 m apart. Metanor is planning to reach full production in the spring of 2013.

Brief Description: Bachelor is a previously mined gold property, consisting of 241 claims and two mining concessions, covering an area of 7 566 73 ha.

Mining Method: Underground, using conventional longhole stoping.

Products: Gold.

Major Infrastructure and Equipment: The surface infrastructure comprises an underground mine, including a hoist room, a compressor room, a headframe, and shaft; a tailing pond, a polishing pond, dykes and drainage ditches; a mill, including the assay laboratory, refinery and crushing room; an administrative office and warehouse; a garage and fuel tanks; storage for hazardous materials; and a security system.

The construction of underground infrastructure continued during the third quarter of 2012 on levels 12, 13 and 14. All infrastructure is in place on level 15.

The maintenance shop, the refuge station, the sanitary units and the explosive warehouses were completed on levels 12 and 13.

On level 14, Metanor has completed the development of the rock-breaking station and started the construction of the crushing infrastructures, which will receive all the ore. The changes at the mill to convert the process from a Merryl-crow technology to carbon-in-pulp were completed during the fourth quarter. The mill is now fully operational.

Geology: The mine is located at an elevation of 100 m and is covered by coarse and sandy glacial deposits. It is situated west of the Chibougamau-Chapais greenstone belt, which is part of the Abitibi geological subprovince of the Superior Structural Province. The property is underlain by Archean volcanic rocks of the Obatagamau formation. This formation includes mafic, intermediate and felsic flows and their intrusive equivalents. The epizonal syn-to-post-tectonic composite O'Brien ‘granite’ is a prominent feature east of the deposit. Post-tectonic lamprophyre dykes are also present in the mine.

Reserves: Total proven and probable reserves as at April 2011, were 645 495 t, with a grading of 7.54 g/t gold.

Prospects: The development of the access drifts toward the mineralised zones continued during the third quarter of 2012. The development of levels 12 and 13 is taking place in the mineralised zones. A total of 3 854 t of ore coming from the development of level 12 and 13 was shipped to surface during the fourth quarter. The ore was processed during the fourth quarter of 2012 to confirm the grade and continuity of the veins and validate the resource model.

Contact Person: Manager of operations of the Lake Bachelor-Barry complex Mauril Gauthier.

Contact Details:
Metanor Resources
Tel +1 819 825 8678
Fax +1 819 825 8224
Email info@metanor.ca
Website www.metanor.ca